I use my handheld all the time. We have students using them in the classroom
to draw (with a freeware drawing and animation program called Sketchy). The
students take them out to the forest nearby and do observational drawings.
They can save them in a paint program on the computer and work into them.
They are doing this with their science teachers and also using the handhelds
to record data.
We are also using them for assessment. We have loaded our state arts
standards on to the palms and teachers can walk around during class and
record observations. Then they can hot sync them to the computer and print
out individual reports on each student. I have some great web sites on using
Palms in the classroom that you could probably also find with a search